Get the detailed information on SAC code and Gst Rate finder
Instance the Central Board of Indirect Taxes and Customs introduced a new system of nomenclature, which is known as the Service Accounting Code (SAC). Many similarities were seen between the SAC code and HSN code. But is it so? Let’s discuss more on SAC code to understand it.
What Is SAC Code?
SAC Code is a 6-digit code that is based on HSN (chapter 99), and is globally accepted. It helps in the classification and identification of services provided in India. HSN code helps in the classification of products, whereas SAC code GST helps in the identification of services. There are five slabs of GST percentages- 0, 5, 12, 18, and 28. It is applied according to the SAC list. Services that are not mentioned in this list are termed as unavailable, and default 18% GST is applied. Search for a quick SAC code finder to find your SAC code.
Understanding SAC code with the help of an example
Let’s take the example of a SAC code to decode its meaning. For instance, consider SAC code — 995431. Every SAC code starts with 99. The middle 2 digits indicate the major nature of business. So 54 signifies construction and allied activities. The last 2 digits help in finding out the detailed nature of services. Here 31 means demolition.
What is the importance of the SAC list?
Made classification easy
Earlier, the simplicity of classification was limited to products through the HSN code list. Businesses offering services faced difficulty in this process of identification of services under the GST regime. So the introduction of the SAC list helped in identifying specific services among a number of goods and services and filing taxes accordingly.
Find appropriate GST rate
With the SAC code, one will be able to know how much tax will be imposed and how calculation has to be made for a specific type of service.
Necessary field while registration
Like HSN, it is the compulsory field while registering on different portals.
Who can use the SAC code?
All the service providers need to use their SAC codes while filing GSTR. All the taxpayers should mention the SAC code while filing the GSTR. The criterion for utilizing the SAC code while filling out the GSTR.
● If the company’s turnover is less than Rs.1.5Cr, the SAC code is not required.
● For businesses with a revenue of Rs.1.5Cr. to Rs.5Cr., a SAC code is required.
● The SAC codes must be mentioned if the person or company has a turnover of more than Rs.5 crores.
Is it Mandatory to mention the SAC code in the invoice?
SAC codes are used to categorize the various services offered by businesses. If the service provider’s annual revenue exceeds Rs.1.5Cr., the SAC code must be included in the invoice. The taxpayer must also mention the SAC code for automated form filling when filling out GSTRs. It helps you save both time and money.
Want to Search your SAC code GST?
You are looking for a quick SAC code finder, then you can contact Export and Import data Platform. They can help in finding SAC code and HSN code with a single click. Just visit the official website for more details.
